Costing Support for EV Battery Manufacturing
This report estimates the total cost of federal and provincial government support for EV battery manufacturing announced to date that will be provided to Northvolt, Volkswagen and Stellantis-LGES. The report also provides estimates of the break-even timelines for the announced production subsidies.
To increase transparency around these announcements, we are providing an estimate of the total cost of government support for EV battery manufacturing—including both announced and non-announced costs.
We estimate the total cost of government support for EV battery manufacturing by Northvolt, Volkswagen and Stellantis-LGES to be $43.6 billion over 2022-23 to 2032-33, which is $5.8 billion higher than the $37.7 billion in announced costs.
Based on Northvolt’s projected annual production schedule, we estimate a break-even timeline of 11 years for the $4.6 billion production subsidy.
We estimate a break-even timeline of 15 years for the $13.2 billion production subsidy announced for Volkswagen, and 23 years for the $15.0 billion in production subsidies announced for Stellantis-LGES—consistent with our previous estimate of 20 years based on their combined production schedules.
Parliamentary Budget Officer